AAP minister slams Centre's 'Operation Lotus' after ED arrests leader

AAP minister Harbhajan Singh ETO slammed the Centre after the ED arrested his colleague Sanjeev Arora, alleging central agencies are being misused for 'Operation Lotus'. Arora was arrested in a money laundering case and remanded to ED custody.

Aam Aadmi Party minister, Harbhajan Singh ETO, on Sunday criticised the Central government following the arrest of his colleague Sanjeev Arora by the Enforcement Directorate. He claimed that central agencies are being used to pressure opposition leaders to join the BJP. The AAP minister said, "This is an attempt to intimidate people into joining the BJP under 'Operation Lotus,' which we strongly condemn." the MLA from Jandiala Assembly said.

His remarks followed after Enforcement Directorate took Punjab Minister Sanjeev Arora into custody. Speaking to ANI, Singh said, "... Central agencies like the ED and CBI are being misused. Yesterday, our colleague Sanjeev Arora was arrested by the ED. This is an attempt to intimidate people into joining the BJP under "Operation Lotus," which we strongly condemn. Nationwide protests are taking place today. The same tactics used in Bengal are now being tried in Punjab to grab power, but the people of Punjab will not let this happen."

Arora remanded in money laundering case

Meanwhile, a special court in Gurugram has remanded Punjab Minister Sanjeev Arora to seven days' Enforcement Directorate custody in a money laundering case linked to alleged fraudulent Goods and Services Tax (GST) transactions over Rs 100 crore.

Arora was sent to the ED custody hours after the agency arrested him on May 9 from Chandigarh and produced before the court for seeking custodial interrogation.

Arora was arrested following a day-long search at his four premises, including his residence, his associated entities, and one office premises belonging to Hampton Sky Realty Limited (HSRL), which is also under the agency's scanner in the case. The ED's action was part of an Enforcement Case Information Report (ECIR) recorded by it on May 5 this year.

Details of the ED investigation

ED sought Arora's custodial remand by alleging that on April 17, 2026, a search and seizure operation was conducted by the agency at the premises of HSRL (earlier known as "Ritesh Properties and Industries Ltd) and others under the provisions of Foreign Exchange Management Act (FEMA), 1999, based on credible information regarding highly suspicious inward remittances received in the guise of bogus exports, in violation of the provisions of FEMA, and during the course of search proceedings, it is found that HSRL, has shown sale of mobile phone, valued at approximately Rs 157.12 crores from May 12, 2023 to October 27, 2023 during 2023-24 to several local and overseas entities.

It is further alleged that out of this, exports worth about Rs 102.50 crore were made to two UAE-based entities-- Fortbel Telecom FZCO and Dragon Global FZCO. ED said Fortbel Telecom FZCO is a related entity of Fortbell Gadget Pvt Ltd, which is beneficially owned and controlled by Hemant Sood and Chander Sekhar, the other beneficial owners of HSRL.

During the investigation, the ED said, HSRL is found to be "beneficially owned and controlled by Sanieev Arora and his family members, with Kavya Arora, son of Sanjeev Arora, as Managing Director, along with Hemant Sood, Chander Sekhar, Findoc Finvest Pvt Ltd and others.

ED further said HSRL sold mobile phones worth Rs 157.12 crore during the Financial Year 2023-24, to several local and overseas entities. Sanjeev Arora was the Chairman and Managing Director of HISRL and was responsible for the conduct of the business of the company when the aforesaid illicit transactions took place," accused the ED in remand copy.

Further, a detailed analysis of exports made by HSRL was undertaken, wherein it was found that from May 2023 to October 2023, HSRL purportedly exported goods (mobile phones) to the tune of Rs 102.50 crores to Fortbel Telecom FZCO, and Dragon Global FZCO and as per material collected. Rahul Aggrawal is the beneficial owner of these two foreign entities to whom the mobile phones are purported to be exported. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)